RBC: Galp Energia Tipped for Re-rating on 'Differentiated Production Growth'

04:17 AM EST, 12/05/2025 (MT Newswires) -- Galp Energia's (GALP.LS) "differentiated production growth" should warrant a re-rating, according to RBC Capital Markets. The research firm said Thursday its bull thesis is supported by the ramp-up of the Portuguese energy company's Bacalhau project in Brazil, which RBC expects to be "immediately accretive" to cash flow and boost production. Analysts also project Galp Energia to reach a net cash position through two near-term catalysts, including a potential $400 million contingent payment from the Rovuma liquefied natural gas project in Mozambique and the anticipated farm-down deal in Namibia. "Given Galp's high quality portfolio, [free cash flow] generation and portfolio growth in the coming years, we believe Galp should ultimately trade at a premium to peers," the note said. RBC rates the stock at outperform, with a price target of 17.37 euros. The research firm also named Galp Energia as a "dark horse" stock in its 2026 global energy outlook report.